Bringing the bill into law
The Australian Federal Parliament has approved legislation banning the use of credit cards for online betting.
In November, Australia’s House of Representatives passed the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023. Submitted in September for approval, the bill sought to ban credit cards and digital currencies being used with online betting.
Going further, the legislation’s approval has been cleared for it to pass into law. It’s hoped that banning the use of credit cards as a payment method in online gambling will boost responsible gaming.
an important measure to protect customers and their loved ones”
Applauded by Responsible Wagering Australia (RWA) and its members, CEO of RWA Kai Cantwell said it was “an important measure to protect customers and their loved ones, making it easier for people to stay in control of their own gambling behavior.”
What does the bill cover?
Following the news, the Australian Banking Association (ABA) welcomed the passing of the bill. In the early 2000s, credit cards were banned for gambling in hotels, clubs, and casinos, but their was permitted for online gambling.
the new laws will bring online gambling into line with the rest of the gambling industry”
ABA CEO Anna Bligh said: “….the new laws will bring online gambling into line with the rest of the gambling industry.” She added that the bill will help protect consumers as using credit cards for gambling “can lead very quickly to a very serious debt trap.”
The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 will:
- prohibit the use of credit cards, credit-related products and digital currency as payment methods for interactive wagering services
- create a new criminal offense and a civil penalty provision related to the ban?
- provide the Australian Communications and Media Authority (ACMA) with enhanced powers to enforce the ban and existing offences under the Act.
Forms of gambling excluded from the bill include lotteries and keno.
UK ban
Cantwell said it’s “disappointing” about the exclusion of lottery and keno games as these make up the most frequent forms of gambling in Australia. During 2020-21, Australians lost more than $3.20bn ($2.10bn) on lotteries and keno, he added.
In April 2020, the UK also took measures to ban the use of credit cards in gambling. Aimed at protecting consumers, the measure applies to offline and online gaming offerings. The sole exception is for buying tickets to non-remote lotteries. Customers are also not able to fund e-wallets through a credit card to gamble.
quickly rack up significant debts with credit cards
Then-UK Gambling Commission CEO Neil McArthur said that people who gamble with money they do not have quickly rack up significant debts with credit cards.?